Endeavour lifts minimum dividend payout to $200m after posting “solid” H1 numbers

Sebastien de Montessus, CEO, Endeavour Mining

ENDEAVOUR Mining has targeted a minimum total dividend of $200m for the 2022 financial year, more than its targeted payout policy, following a solid showing in the first half in which interim adjusted earnings before interest, tax, depreciation and amortisation of $726m was unchanged year-on-year.

It declared a $100m dividend for the six months ended June 30 which is 43% higher than last year’s return and which was “… reflective of our improved financial position and confidence in our business outlook”, said Endeavour CEO, Sébastien de Montessus in notes to the firm’s results published today.

The company presented its numbers to analysts this afternoon.

The new minimum dividend payout is $50m more than the initial commitment. De Montessus said it is supported by a share buy-back programme which totalled $176m since launch in April 2021. The firm bought back $38m of its own shares during the period under review.

Endeavour took centre stage in global gold industry consolidation in 2019 and 2020 in an effort to leapfrog into the top ten largest gold producers with production of over a million ounces annually. Since then, however, it has sought to restyle its investment offering focusing on organic growth and returns. Including today’s dividend announcement, it had paid out around 10% of its market capitalisation since beginning dividends.

It has also listed on the London Stock Exchange. Shares in the company are about 9% lower year-to-date and 16% lower over the last 12 months.

Second quarter production totalled 345,000 ounces taking production for the year to 702,000 oz, a percent higher than at the same stage last year. It incurred all in sustainining costs (AISC) of $900/oz for the six months (AISC of $954/oz for the quarter) which is 7% higher year-on-year.

Endeavour said it was “well positioned” to meet full year production guidance of between 1.32 and 1.4 million oz for the year at $880 to $930/oz for AISC. De Montessus described the production numbers for the six months as “solid”.

De Montessus also said he expected results from a definitive feasibility study of the Lafigué project, part of the Fetekro orebody in Côte d’Ivoire, in the third quarter.

Asked about potential upside as a result of the firm’s focus on exploration, De Montessus said “the beauty” of West Africa is that it had been host to some of the biggest gold discoveries of the past 10 years.

He added: “We’ve got one or two promising exploration sites in Guinea and Côte d’Ivoire  and we plan to make some announcements in Q3 or the beginning of Q4 … Some of them are quite spectacular and they will fuel our organic growth pipeline”.

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